Thursday, 10 May 2012

Lingui 3Q net profit slumps 80.3% to RM13.59m

KUALA LUMPUR (May 10): LINGUI DEVELOPMENT BHD []’s net profit slumped 80.3% to RM13.59 million for its third quarter ended Mar 31 from RM69.11 million a year ago due to lower extraction volumes and weak demand from Japan.

In a statement on Bursa Malaysia on Thursday, it said revenue for the quarter fell 0.6% to RM374.15 million from RM377.39 million a year earlier.

Reviewing its results, the company attributed the weak performance to lower extraction volumes as well as weak demand for timber for reCONSTRUCTION [] activities affected by the Japanese earthquake.

For the nine months ended Mar 31, the group’s revenue rose 11.97% to RM1.31 billion from RM1.17 billion while net profit plunged 81.38% to RM30.53 million from RM163.99 million.

On its prospects, Lingui said the short term outlook for timber industry was expected to be constrained due to more purchasers taking a cautious approach with the uncertain world economic conditions.

It said the timing of Japan’s major reconstruction activities in areas affected by the earthquake and tsunami would be a key impetus for an increase in plywood demand and hopefully selling prices.

“The demand from China for timber products has shown sign of slowing down with implementation of various macro-economic control measures by the Chinese government to curb the over-heating of the Chinese economy.

“Operating under a challenging environment with uncertain outlook and likely greater competition, as various producers strive to increase or at least maintain market share against a likely lower demand base, the Group will continue to manage its cost to remain lean and efficient,” it said.